EfTEN to Develop Two New Care Homes

Subsidiaries of EfTEN Real Estate Fund III have signed a contract to acquire two elderly care home projects.
The fund’s subsidiary, EfTEN Valka, has entered into an agreement with Südamekodud to acquire a property located in Valkla village, Kuusalu municipality, Harju County, which includes a care home building in need of renovation, the company announced to the stock exchange.
The fund plans to convert the existing building into a general care home accommodating up to 250 residents. A construction tender has not yet been announced but is planned to take place within three months after the signing of the property rights agreement.
According to the agreement, Südamekodud — which operates care homes in nine locations across Estonia — will remain the tenant of the property. The sale price of the property is €2,005,000, and the buyer commits to invest up to €2 million. The purchase and investment will be financed from the fund’s own resources.
The fund’s second subsidiary, EfTEN Ermi, has signed an agreement with Südamekodud to acquire a building right in Tila village, Tartu municipality, Tartu County. The fund plans to build a care home there for up to 120 residents. A construction tender has not yet been announced and is also planned within three months after the signing of the property rights agreement.
The care home will be leased long-term to Südamekodud. The sale price of the building right is €233,235, and the purchase and investment will be financed from the fund’s own capital.
Completion of the transaction requires the consent of Tartu municipality, the signing of the lease agreement, and the approval of the Competition Authority. After that, a property rights transfer agreement will be concluded.